The case, which began in 2009, will continue as Judge Thomas Thrash declined to dismiss the case on Monday 6 December, partially granting and denying various aspects of the complicated suit.
Innotex, a China-based subsidiary of Print-Rite launched legal action accusing Horei and ITM, both resellers based in Atlanta, USA, of failing to pay for toner cartridges purchased between 2006-2008.
It is suing the two companies for breach of contract and breach of warranty, seeking to recover $3,878,838.41 in damages and additional costs.
However, Horei and ITM claimed that the products were defective and infringed patents, and launched a countersuit soon after, likewise alleging breach of contract and breach of warranty.
Among other counterclaims, the two resellers allege that several cartridges, including HP 1338A, Samsung ML-1710 and Brother TN-460 “did not fit into printers, did not make proper copies, or leaked toner”.
Innotex disputes these allegations, and also stated that expert testimony was needed to determine the claims, though the Georgia Court of Appeals ruled that expert testimony is not required.
It is also alleged that Innotex failed to replace a patent infringing doctor blade in the Samsung ML-1210 cartridges, and the company also failed to provide promised intellectual property opinion letters verifying that the cartridges did not infringe patents.
Innotex again stated that expert testimony would be needed, and also disputed whether there had been such an agreement.
The suit continues as case 1:09-cv-00547-TWT in the US District Court for the Northern District of Georgia, Atlanta Division.